BILL KOEFOED: Hi, good morning, everyone. Welcome to the Microsoft 2009 Financial Analyst Meeting and welcome to those of you who are on the Web. We are streaming today's meeting today live on the Microsoft Investor Relations Web site for those of you who are watching on the Web.

I'm going to start with a little bit of housekeeping. The agenda for today is in the packet in front of you. For those of you who are on site, the corporate communications network intranet site, otherwise referred to as COMNET, has PowerPoint decks that will be loading as each presenter comes on stage. In addition to that, there will be feedback forms for each presenter after they present, and we'd like you to fill out the feedback forms at that time.

And, if you're having trouble with COMNET, please, there's a little yellow flag that's in front of you, and you can just raise that flag and someone will be out there to help you.

In addition to that, at the end of the day, if you fill out your feedback forms, we'll be offering prizes as an incentive for you to do that, and we'll leave the nature of the prize for the end of the day.

In addition to that, PowerPoint slides and the transcripts from today's presentation will be available after the meeting or even during the meeting for those of you who are on Web at the Microsoft Investor Relations Web site, so please access it there.

Again, continuing on with the housekeeping, bathrooms are either here to my left or outside down the hall and to the right. So please take note of that. Parking, for those of you who drove, please make sure that you register either with the front desk or—and make sure you didn't park in tow-away zones, as that's not a good thing to do. And the registration desk, again, can help you out.

In addition to that, many of you were at the product fair that we had in the room behind us as the meeting started. If you haven't visited the product fair, we'd encourage you to do that as it has some great real active participation that you can see our products during the day.

Lunch will be in the St. Helens Room, which again is down the hall and to the right—for those of you who have been here in the past, it's across from Kodiak—where our executives look forward to having lunch and will be available during lunch. Tables will be marked with signs to identify what the business group is for each executive. In addition to that, there's a cocktail reception that will be after the meeting today that will also be held in the St. Helens Room.

And then again, just continuing on with the housekeeping, shuttle buses will leave for the airport after the meeting. There will be another set of them that will leave after the reception. And any shuttles back to the hotels will happen after the reception. So if you need any help with that or with taxis, you can go see the business center.

And then, finally, I just want to reflect a little bit. This is my first FAM personally. I've been in this role for nine months, and it's been an interesting nine months and has been an interesting one not only for the market but for us here at Microsoft. One of the things I was lucky to have was a great team when I started, and I'd like to just thank my team. Many of you have seen them—Emily Zander actually puts on this event here today. And, again, I think hopefully you've been—I've gotten some great feedback on the logistics and just making sure everything was set up for everyone. So just a call out to my team.

One housekeeping notion on that as well, which, many of you know Kevin Green. Kevin will actually be leaving the Investor Relations team. He's actually going to go work for Tami Reller in the Windows Client Finance team. And Lisa Nelson will be joining the IR team, and so if you get a chance, get to know her today, and she will be representing the Client and the OSB businesses on a going-forward basis.

During this last nine months we've, as you can see, done a pretty good job with actually trying to get it to be more proactive in terms of our outreach. Obviously we have this event, FAM, and we have earnings calls, campus visits. We've been visiting more sell-side conferences, we've been attending more industry events, holding investor meetings. We obviously have the shareholder meeting, as well as—please visit the Investor Relations Web site, because any of those events that we've been to we actually have posted transcripts and posted webcasts out on the Web site.

One thing to note: We will be evaluating the need for the strategic update meeting in February, and I'm looking for your feedback on whether you think that's a good thing or bad thing. So please give that to me at your convenience.

And then, finally, I want to make note that throughout the day we will be making forward-looking statements. You should refer to our SEC filings for the risk factors relating to our business. We undertake no duty to update any forward-looking statements. Also, for any non-GAAP financial information provided today, reconciliations between GAAP and non-GAAP financial measures will be posted on the Microsoft Investor Relations Web site.

With that, it gives me great pleasure to introduce Microsoft's chief executive officer, Steve Ballmer. (Applause.)

Due to the varying sound quality and subject matter of tapes, the information in this transcript may contain inaccuracies.